Treasurers and CFOs are increasingly challenged to provide an independent rationale for their money market fund investment decisions. They must demonstrate that they appropriately monitor investments, policies, and risk exposures.
FundIQ® is an online platform designed to help you manage risk and optimize your portfolio’s performance potential. Unlike other services that promote “transparency” but repackage information provided by the funds themselves, FundIQ® delivers independent research and expert opinions on money market funds.
Methodology
FundIQ® was designed to maximize risk-adjusted performance. Delivered via an online platform, it analyzes institutional prime money market funds and compares fund characteristics against peer group averages—enabling you to benchmark your funds. It assigns scores to each risk category, as well as to the funds as a whole, to drive more informed investment strategy decisions. FundIQ® even allows you to customize its research and ratings according to the decision criteria that are most important to you.
FundIQ® analyzes 50 characteristics within five risk categories of institutional prime money market funds:
- Portfolio Risk. How is liquidity affected by WAM, WAL, diversification, and other key characteristics? FundIQ® measures 21 characteristics in this risk category.
- Sponsor Risk. Is a fund backed by an institution with an infrastructure that can withstand crises? FundIQ® evaluates seven factors in this area.
- Systemic Risk. Is a fund able to contend with geopolitical, regulatory, market, and other non-fund-specific risk factors? FundIQ® weighs eight variables of Systemic Risk.
- Shareholder Risk. How may the composition of shareholders impact outflows when perceived risk increases? FundIQ® assesses eight characteristics of Shareholder Risk.
- Management Risk. Does the management team have a favorable track record—in both good times and bad? FundIQ® considers six Management Risk variables.
Benefits
FundIQ® enables you to:
- Receive Capital Advisors Group’s scores on money market funds, including an overall score and separate assessments of portfolio, sponsor, systemic, shareholder, and management risks.
- View risk characteristics and dollar-weighted ratings of your combined money market fund positions.
- Evaluate the impact of buy/sell decisions on your money market fund holdings.
- Customize Capital Advisors Group’s overall fund scores to reflect your most important criteria for selecting and monitoring investments.
- View economic exposures to individual credits and group economic exposures by country, asset class, and industry.
- Analyze security-level data in detail.
- Set up custom alerts to notify you when your holdings deviate beyond your risk tolerance settings.
- Generate custom reports for internal distribution.
